ROSSMOOR : Bond Sale for Park Ready to Proceed

The long-delayed sale of bonds to finance the purchase of the vacant Rush Elementary School--so it can be turned into a park--is about to happen.

Robert J. Whalen, the lawyer whose firm is handling the bond sale, told board members of the Rossmoor Community Services District on Wednesday that the $5-million bond sale is ready to proceed and, if authorized by the board soon, the district could have the funds by the end of February.

The board may authorize the sale when it next meets on Feb. 3, he said.

General Manager Bill Sheldon said the board does not expect any more court challenges to the bond issue. A citizen challenge recently was rejected by the Court of Appeal. Resident Virginia Dorton, in a suit originally heard in Orange County Superior Court, had questioned the legality of imposing an annual $109 special tax on Rossmoor property owners to fund the bond issue.

“We’re moving ahead with the assumption there wouldn’t be any more appeals,” Sheldon said. “We believe this won’t go to the (state) Supreme Court.”

Sheldon said Dorton has until Jan. 19 to appeal. She was not available for comment Thursday.

The Community Services District bought the 8.5-acre site from the school district in 1991 for $4.2 million.

Sheldon said the district’s first $400,000 payment was made in March, 1992, and the next is due Feb. 1. He said money is available for the February payment, although funds from the bond sale are not.

Voters approved buying the property in June, 1991. Under the plan, each homeowner will be assessed $9.05 a month for 30 years. An assessment district was formed in 1991, but the bond sale was held up when Dorton challenged the assessment in Superior Court.

The court ruled against Dorton in September, and the 4th District Court of Appeal in San Diego upheld the ruling in December.

John Stiepel, a vice president of Sutro & Co., the Los Angeles financial company that is underwriting the bond issue, said the bonds would be sold with about 6.7% annual interest, depending on the prevailing rate in late February.

The plan to turn the school site into a park has divided Rossmoor residents. Some say the park will attract gangs and vandalism, while others say it’s necessary for leisure and sports activities.

Sheldon said it will take some time before the park facilities could be built. He said a structural engineer will be hired to review the current buildings and facilities. After that, the district will turn to designing the park.

“We don’t have a detailed plan, only broad concepts,” Sheldon said. “We bought the property and will try to pay it off. The next step is how to use it.”